Joel Mokyr

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The American economist Joel Mokyr, one of the cowinners of the 2025 Nobel Prize for Economics.

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Joel Mokyr (born July 26, 1946, Leiden, the Netherlands) is an American-Israeli economic historian and winner, with Philippe Aghion and Peter Howitt, of the 2025 Nobel Prize for Economics (officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) “for having explained innovation-driven economic growth.” Half of the prize was awarded to Mokyr “for having identified the prerequisites for sustained growth through technological progress,” and the other half was jointly given to Aghion and Howitt “for the theory of sustained growth through creative destruction” (that is, an explanation of how economic growth is sustained through regular technological innovations that render existing products or production methods obsolete). Mokyr was recognized by the Royal Swedish Academy of Sciences, which selects the winners of the Nobel Prize for Economics, for explaining how continued economic growth since the start of the Industrial Revolution has depended on the steady development of what he called useful knowledge, consisting of “propositional” scientific knowledge of why something works, as well as “prescriptive” knowledge of what is needed to make something work. Economic growth, according to Mokyr, also requires societies to accept the considerable economic changes that may result from new technologies.

Joel Mokyr graduated from the Hebrew University of Jerusalem in 1968 with a bachelor’s degree in economics and history. He later attended Yale University, where he received a master’s degree (1972) and a doctoral degree (1974) in economics. Soon after his graduation he became an assistant professor and later an associate professor of economics at Northwestern University (1974–81), as well as a visiting professor at several other universities. In 1994 he was named the Robert H. Strotz Professor of Arts and Sciences at Northwestern University, where he was also a professor of economics and history, and in 2001 he became the Sackler Professorial Fellow at the Eitan Berglas School of Economics at Tel Aviv University.

Mokyr and his cowinners of the Nobel Prize were recognized for their explanations of the complete absence of sustained economic growth in many societies prior to the 18th century, despite periodic advances in technology. Mokyr’s work focused on the absence of genuinely useful knowledge before the Industrial Revolution, while the work of Aghion and Howitt presented a mathematical economic model that demonstrates how regular advances in technology may ensure constant economic growth. In his historical account of long-standing economic stagnation, Mokyr demonstrated that earlier societies possessed prescriptive knowledge unrelated to propositional knowledge, or vice versa: understanding how to use a certain technology without grasping a scientific explanation of its operation, or arriving at a scientific discovery without knowing (or even attempting to know) how it might be applied in new technologies. As Mokyr notes, such early misdirection led to futile attempts to create perpetual motion machines or gold-creating alchemy. However, as scientific knowledge advanced in the 16th and 17th centuries (see Scientific Revolution), scientific research became much more methodical and accurate, which then made possible the creation of technologically sound commercial products.

Another important requirement of steady economic growth, according to Mokyr, is the acceptance of economic and social changes resulting from new technologies. A newly manufactured product that better performs a useful function—or performs a completely new useful function—will generally replace existing products, resulting in financial losses for the corresponding companies and at least temporary increases in unemployment. Other companies are then likely to create their own new products based on advanced technologies, which might then reorder the prosperity of companies in the same industry. Such advances, if they occur regularly, will result in steady economic growth and improve the quality of life in society as a whole. Although established business groups are likely to oppose new technologies or inventions that threaten their profit margins, such changes must be permitted. Because economic growth thus depends on genuinely free enterprise, the economy as a whole should not be dominated by industrial monopolies or politically privileged economic elites.

Mokyr’s contributions to the study of economic growth are presented in several important works, including The Enlightened Economy: An Economic History of Britain 1700–1850 (2009); The Lever of Riches: Technological Creativity and Economic Progress (1990); and Why Ireland Starved: A Quantitative and Analytical History of the Irish Economy, 1800–1850 (1983). Mokyr has also received many honors and awards, including grants from the National Science Foundation, the presidency of the Economic History Association (2002–03), and the Dr. A.H. Heineken Prize for History, then awarded by the Royal Netherlands Academy of Sciences (2006). Mokyr is the author of Encyclopaedia Britannica’s treatment of the historic starvation in Ireland, “Great Famine.”